Social risk refers to the potential negative impact on an individual's social standing or reputation that may result from choosing a particular product. This can be related to the approval of an important reference group, such as family or peers, and is not necessarily tied to financial or performance risk. Therefore, the best choice is E.

Solved

Social Risk Is

Question 45

Multiple Choice

Social risk is:

A) Highly correlated with financial risk
B) Associated with the cost of the new product
C) The risk that the product will not perform as intended
D) The risk associated with the potential for lost revenue if a product breaks down
E) Risk that the purchase will not meet the approval of an important reference group

Correct Answer: